Industry sources have also revealed that the airline does not intend to seek an Irish airline licence but will operate under the licence of an existing operator from another EU state. Sources said this was necessary if the company was to start operating in time for summer.

The airline's backers have established two companies in recent weeks - Nex Aviation, which will operate its passenger services, and Nex Aviation Aircrafts, which will lease its aircraft.

The airline will initially operate using a single BAe146 aircraft, which will be leased from Exxtor, a Channel Islandsbased aviation consultancy. Despite reports to the contrary, sources have confirmed that Exxtor has not taken a stake in either firm.

It is unclear whether Browne is an investor in either firm but he is a director of the leasing company. One of the airline's two known investors, Nicholas Fewer, chairman of Waterford Airport, is a director of both firms, but the other investor, Donal Ormond, a shareholder in WLR FM, is a director of the airline company only.

Fly U's general manager and spokesman, former Galway Airport marketing and route development executive Peter O'Mara, is not a member of either board.

O'Mara announced last month that the airline planned to operate direct flights from Galway airport to Bordeaux, Faro and Malaga this summer.

However, industry sources have said that, while the airline has considerable potential, it may prove impossible to launch a new airline in such a short time. It is also expected to launch routes from Waterford at a later date.

Fly U, Browne and O'Mara were not available for comment last week.